front 1 Average costs | back 1 Cost of producing a single unit of output |
front 2 Break even | back 2 The level of output where sales revenue is the same as total costs, neither a profit or loss is made |
front 3 Diseconomies of scale | back 3 Factors that result in average price of production increasing as output increases |
front 4 Economies of scale | back 4 Factors that result in average price of production decreasing as output increases |
front 5 Fixed costs | back 5 Costs that don't change with output |
front 6 Margin of safety | back 6 Difference between the current level of output and break even point |
front 7 Quality assurance | back 7 Achieving quality production by designing every process to get the product 'right first time' and preventing mistakes |
front 8 Quality control | back 8 Checking quality through inspection at the end of the production process |
front 9 Total Costs | back 9 Fixed costs plus variable costs |
front 10 Variable costs | back 10 Costs that change with output |
front 11 Production | back 11 The process of converting inputs like (raw materials and components) into finished products |
front 12 Productivity | back 12 Measure of efficiency by caluclated by dividing output by input |
front 13 Efficiency | back 13 Making the best possible use of resources. Maximising outputs from inputs. |
front 14 Inventory | back 14 Stock of work in progress, raw materials, and finished products held by a business |
front 15 Lean Production | back 15 Production of goods and servies with maximum efficiency and minimum waste |
front 16 Kaizen | back 16 ( 'continuous improvement') constantly introducing small changes in a business in order to improve quality and/or efficiency. |
front 17 Just in time (inventory management) | back 17 is an inventory management method where supplies arrive exactly when needed in the production process |
front 18 Job production | back 18 Producing a unique product, one at a time. |
front 19 Batch production | back 19 Producing goods in batches where all products must pass through one stage of production before moving onto the next |
front 20 Flow production | back 20 Constantly producing large quantities of identical goods |
front 21 Transformation Process | back 21 activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. |
front 22 Effectiveness | back 22 achieving business objectives by using inputs productively to meet customers’ needs. |
front 23 Value Added | back 23 Value-added is the difference between the price of product or service and the cost of producing it. |
front 24 Capital Intensive | back 24 High quantity of capital input compared to labour input |
front 25 Labour intensive | back 25 High quantity of labour input compared to capital input |
front 26 Process Innovation | back 26 is the implementation of a new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software |
front 27 Internal Economies of scale | back 27 Economies of scale achieved within an organisation |
front 28 Reorder Level | back 28 Inventory level at which a company would place a new order |
front 29 Lead Time | back 29 Time taken between placing an order and receving delivery. |
front 30 Buffer Inventory | back 30 supply of inputs held as a reserve in case of unexpected changes in demand or supply. |
front 31 External Economies of scale | back 31 Economies of scale achieved outside the firm due to larger changes with an industry |